Goldman Sachs' Heath Terry predicts Amazon will report sales that will top estimates for the September quarter as its cloud computing revenue rises. As a result he is increasing his 12-month price target to $1,050 from $920, which represents 28 percent upside from Friday's close.

"Expect continued growth momentum in AWS & Retail," Terry wrote in a note to clients Monday.

"We believe the risk-reward remains favorable as investments in web services, infrastructure and logistics result in share gains, cash flow growth and continued high returns on investment."